Applying the 550g emissions performance standard rule proposed by the European Commission as part of the Clean Energy Package may have significant unintended economic and systemic consequences for the clean energy transition, shows a report commissioned by Eurelectric and produced by Compass-Lexecon.

The application of the 550g rule will have an uneven impact on thermal baseload plants. 41% of baseload thermal capacity in Eastern Europe is ineligible for capacity rent in the 550 EPS scenario (100% Bulgaria, 91% Poland, 87% Czech Republic, 73% Slovenia). For Western Europe, this ratio is of 21% (Germany 72%).

Replacing coal and lignite power plants with gas fired ones, increases the volume of gas consumption by 40% leading to higher import dependency, which has a considerable security of supply dimension for Central and Eastern Europe.